Solo Oil acquires 10 per cent interest in Helium One

LHC helium tanksAn LHC helium tank. (Image source: Leo Koivulehto/Commons)Solo Oil have acquired a 10 per cent stake in Helium One for a total consideration of GDP£2.55mn (US$3.17mn)

Additionally, Solo has also been granted a 90-day call option to increase its investment in Helium One by a further 10 per cent, for an additional investment of £4 million, which would increase its stake to 20 per cent. Solo has additionally raised GBP£1.2mn (US$1.5mn) by means of a Company arranged subscription with institutional and private investors.

Neil Ritson, Solo’s Chairman commented, “Solo has successfully invested in bringing several gas projects to market in Tanzania which are now reaching maturity from an investment viewpoint. Given the related pricing of petroleum gas and helium, which is globally in short supply, Solo has for some time been investigating opportunities in the helium sector.  Helium One’s portfolio of prospective helium projects in Tanzania provides Solo with a unique early stage investment into a potentially world-scale helium resource. The Company believes that Rukwa, together with Helium One’s additional project areas at Eyasi and Balangida, represent an attractive strategic investment, especially given the helium market’s weak supply dynamics and continued demand growth.”

Solo and Helium One have identified Tanzania as a key country for helium exploration based on the evidence of surface gas seeps in the geological rift valleys adjacent to the Tanzanian Craton, as well as its strategic location for global exports through its deep-water port at Dar es Salaam. 

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